Answer the following question in detail, showing every step of calculation and EXPLAINING why something happens when it happens, use diagram if appropriate. The answers must be typed in MS Word. 1. Suppose you bought shares of a company for TK 10,000 last year, this year you sold it for TK 20,000. You are supposed to pay a 10% tax on capital gain. Explain the impact of a 100% inflation on the capital / gain profit you make.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 33P: The index number representing the price level changes from 110 to 115 in one year and then from 115...
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Answer the following question in detail, showing every step of calculation and EXPLAINING why something happens when it happens, use diagram if appropriate. The answers must be typed in MS Word. 1. Suppose you bought shares of a company for TK 10,000 last year, this year you sold it for TK 20,000. You are supposed to pay a 10% tax on capital gain. Explain the impact of a 100% inflation on the capital / gain profit you make.

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